Vol. 2, No.3 July 1992
MAJORITY OF CONGRESS WHAT'S ON DECK FOR NAFTA
SPONSORS WAXMAN-GEPHARDT Trade Talks in Extra Innings
There are conflicting rumors about exactly when
The number of Members of Congress co- we should expect the completion of the NAFfA
sponsoring a resolution calling for the safeguarding of negotiations and when congressional deliberations on
environmental, labor, public-health and consumer- the issue would begin. Many observers had expected
safety standards in trade agreements has continued to the agreement to be completed by 15 July, but that
mount. date has come and gone and the negotiations
Currently, 218 Members, a majority of the House
of Representatives, are co-sponsors of House According to a 14 July article in the New York
Concurrent Resolution 246; introduced by Rep. Henry Times, 12 of 22 negotiating groups have still not
Waxman (D-CA) and House Majority Leader Richard produced final legal texts on their respective issues.
Gephardt (D-MO). The resolution is intended to At a meeting before the All Star baseball game in San
make clear to the Bush Administration and U.S. Diego later that day, Presidents Bush and Salinas
trading partners that Congress will not approve any announced that the trade ministers from the three
trade agreement, including the GATT and the countries would meet again on 25 July. Some Bush
NAFT A, that jeopardizes U.S. standards. The House Administration officials reportedly want to see an
is slated to vote on the resolution by August. agreement before the Republican National Convention
in mid-August; others hope to have it finished by the
"Trade agreements such as GATT and NAFTA end of August. (Continuedon nextpage)
must not degrade or deter our environmental, worker
and consumer laws," said consumer advocate Ralph
Nader. "It should be the role of the world's largest
economy to lift the standards of other nations around
the world instead of having our standards pulled
down to lower common denominators of other
countries. The fact that a majority of the House has
co-sponsored the Waxman-Gephardt resolution sends
a clear signal to President Bush that Americans won't
fall for back-door treaty preemption of our domestic
health, safety and economic rights through a beguiling
disguise called 'free trade'."
Meanwhile, 24 House Members led by Rep. Jim
Jontz (D-IN) wrote Rep. Gephardt, citing major
commitments to the Congress on which the President
has failed to make good since winning fast-track
authority. They have asked the Majority Leader "...to
challenge the Administration to live up to its
commitments or help us take NAFT A off of the fast
IUE printed 40,000 of these baseball cards. which were
distributedby Fair Trade Campaignat the All Star Gall!£.
WHAT'S ON DECK FOR NAFTA (frompage1) this point, it seems impossible that an agreement
could be passed by Congress before the November
In the meantime, many questions have arisen about election: Congress is supposed to adjourn in early
exactly how "fast track" works and what the likely October, which means that, even if Bush were to
timingof a congressional ote on a NAFTAwould be. initial the agreement now, Congress would not be in
Fast-track legislation is somewhat ambiguous, which session when the 90-day notification period ends.
has caused some confusion regarding the timing of There is a slim possibility that the lame-duck
steps in the congressional review process. Congress would choose to vote on NAFTA, but it
seems much more likely that a debate and vote
Fast-track authority requires that the President, after would take place in early 1993.
the U.S. Trade Representative has initialed a
substantially completed trade agreement, notify What is the latest date that a NAFTA could be
Congress of his intention to enter into an agreement 90 completed and signed without Congress having to
days before signing it. Within two weeks of the vote again to extend fast-track authority? There is
initialing, the seven private-sector advisory committees some disagreement on this issue, but the consensus
(the Services,Investment, Intergovernmental, Industrial, seems to be that the 90-calendar-day notification
Agricultural and Defense Policy Advisory Committees period would .have to terminate before 1 June 1993;
and the Labor Advisory Committee for Trade i.e., the President would need to notify Congress by
Negotiations and Trade Policy) established to review 1 March 1993 that an agreement is ready. But the
the impact of a NAFTA on various sectors must congressional vote could take place, according to the
complete their critiques of the agreement. USTR has consensus, after the 31 May expiration date for the
asked these groups to begin their reviews before the current fast-track authority. Most observers believe,
negotiations are actually completed. According to
several reports, however, many of the advisors are
unwilling to begin their analyses based on verbal
however, that notification will occur not much later
than this summer.
Sources: Information compiled by Thea Lee, Economic Policy
reports on the agreement; they are insisting on seeing
Institute; "In Trade Plan, Mexico Agrees To Open Up
a completed text. Financial Services," by Keith Bradsher, New York Times, 14
July 1992, p. AI; Public Law 100-418, Sec. 1103,
The House Ways and Means Committee and the Implementation of Trade Agreements.
Senate Finance Committee can hold hearings during the
90-day period, and Congress can comment on and vote
to recommend changes in the agreement during this
time, essentially informing Bush that it will not sign it
as is. Like a vote withdrawing fast-track authority, this
would require a majority vote from either house.
If, after 90 days, the President were to join the
leaders of the other two countries in signing the
agreement, the Administration could submit the
implementing legislation to Congress. Congress would
then have a maximum of 90 legislative days to debate
and vote on the agreement and the legislation or 60
legislative days if the agreement does not contain any
revenue provisions. Congress can choose to vote more
quickly than that, as it did in the case of the D.S.-
Canada FTA, when the Senate approved the measure ... .~.......
within a calendar month and the House followed suit :~dit¥ial()fficiM(.. .. ... ....
::.:.WlISbingt()~1).Q~O<>05.USA < ...
When President Bush says he wants to have an ..Ph~he: (202)S!fSf1566 FaX: (202)898~ 1612..
agreement wrapped up by November, he is referring to I .. P~aceDet: dglip . ...
its trinational signing, not congressional approval. At
NEW BOOK ON LABOR PRl CLAIMS WIN IN MICHOACAN,
SUPPRESSION IN MEXICO CONCEDES IN CHIHUAHUA
by Rebekah Greenwald, ILRERF
In gubernatorial elections held 12 July, Mexico's
Exploring the unique history of the Mexican labor ruling Institutional Revolutionary Party (PRI) declared
movement and the legal system that liberates it with itself victorious in Michoacan, while conceding that
one hand and squelches it with the other, Dan La the opposition National Action Party (PAN) had won
Botz's Mask of Democracy: Labor Suppression in in the northern state of Chihuahua. The fact that
Mexico Today focuses on the tragedy behind Mexico's President Salinas called Eduardo Villasenor, the PRI
pro-worker facade. This recently released book looks candidate in Michoacan, to congratulate him on his
at every aspect of workers' lives, from the commun- victory when just 20 percent of the vote had been
ities they live in to the air that they breathe, and counted has been cited by observers as additional
answers the question that banks and corporations dare evidence that, despite the government's claims of
not ask: what is the cost in human terms of export-led reform, Mexican elections remain tightly controlled by
development and unregulated free trade? the government and the PRI.
Beginning with the revolution of 1910, workers According to Mexican political analysts such as
have played an integral role in legitimizing the one- Jose Agustin Ortiz Pinchetti and Miguel Angel
party-dominated Mexican state. In the name of the Granados Chapas, these results followed from a plan
workers, battles have been waged and power wars by Salinas and his advisors to split the conservative
have been lost and won. But Mexican workers have PAN from the progressive Party of Democratic
never received their due. Barred from joining unions Revolution (PRD). The PRI also hoped to weaken the
independent from the state, workers have consistently PRD by engineering a decisive defeat for PRD leader
struggJed to achieve even minimal recognition of their Cuahtemoc Cardenas in his home state of Michoacan.
cons~utionally mandated rights. State suppression has Many observers believe that Cardenas actually won
cost the workers their freedom and much more. the highly contested 1988 presidential elections. He
is expected to be a candidate in the 1994 race, as well.
Even as the terms of North American free trade are
being negotiated and locked into place, the assault on In contrast to the 1988 elections, however, these
Mexican labor continues. Findings from Mask of races were monitored by a coalition of seven
Democracy show that Mexican workers -- men, independent Mexican electoral observation
women and approximately 10,000,000 children -- are organizations coordinated by the Citizens Movement
subject to long hours in hazardous, unhealthy for Democracy (MCD). The coalitions deployed 450
, workplaces for miserably meager wages. Unemploy- poll-watchers around Michoacan and an equal number
ment is estimated at 30 percent of the economically in Chihuahua. The groups presented preliminary
active population and consideration of underemploy- conclusions at a press conference following the
ment drives this figure even higher. As La Botz elections at which they listed nearly 50 kinds of
points out, to prepare for free trade the Mexican irregularities ranging from improper installation and
government has transformed development policies opening (and abrupt closing) of voting booths to the
based on high-wage industrial jobs into export-led lack of secrecy in voting and improper inspection of
policies relying on maquiladoras and low-wage voter identification. According to an article in the 14
assembly-line labor that has helped induce a ten-year July New York Times, observers reported that, in at
decline in wages. . least three cases, voters were moved from one polling
station to another, presumaply to vote twice.
Mask of Denwcracv (227 pages, with an introduction on trade-
linked labor standards by former US. Secretary of Labor Ray As Mexican political observers have often pointed
Marshall) is availablefor $14.00 plus $2.00 shipping from South
out, the lack of democracy is manifest in Mexico well
End Press (ILBN-O-89608-437 -x) or from the International Labor
Rights Research and Education Fund, Box 74, 100 Maryland before voting day. In an article in the 15 July
Avenue, NE, Washington, DC 20002, (202)544-7767. Financial Times, the PRD claims that the PRI outspent
(Continued 011page 9)
MODTLE FORUM: "IS SOCIALLY RESPONSIBLE TRADE POSSIBLE?"
On 16 June MODTLE held a forum entitled "Is citing the transfer of General Motors Company jobs to
Socially Responsible Trade Possible?: EC Experiences Mexico and the northward migration in Mexico of a
and Prospects for NAFfA and GATT". About 70 half million people to the maquiladoras, where wages
people attended the forum, which was divided into two are low, health standards obsolete and working
panels. conditions intolerable.
Ray Marshall, U.S. Secretary of Labor under U.S. Rep. Marcy Kaptur began the second panel
President Carter, began the discussion by relating presentations by noting the contradictions in the free-
"socially responsible trade" to the concept and practice trade approach. Many U.S. workers who have lost
of "sustainability", Le., the covering by companies of their jobs as factories relocate to Mexico are using
all the costs of their production induding those related their unemployment checks tQbuy goods produced by
to labor and the environment, as well as social costs. Mexican workers who receive wages too low for them
In this context, he critiqued the competitive strategy of to buy the products themselves. Alison Pascale, of
wage-cutting and promoted that of improving Rep. Kapoor's staff, reported on briefings held by
productivity through the upgrading of people's USTR for congressional staff. She related that the
educational and skills levels. Bush Administration appears to have taken virtually
no action to incorporate labor concerns, or to make a
Arturo Alcalde, a prominent Mexican labor and direct link between trade and the environment, in the
human-rights lawyer, presented the concerns expressed NAFfA.
by Mexican citizens' organizations. They worry that
a free-trade agreement would further institutionalize Rep. George Brown spoke next on the importance
Mexico's subordination to its neighbors to the North, of a free-trade agreement that will benefit all three
as well as the subordination of unions, environmental countries. The central challenge, he stated, is to set a
groups and other social organizations to the Mexican process in motion that ensures the upward
government. He stressed the importance of harmonization of standards. A social charter that
recognizing that, despite many good laws in Mexico would ensure that the benefits of trade are widely
in the areas of labor, human rights and the shared and lead to a high-productivity model of
environment, these laws are often not enforced. development should be an integral part of the
Globalization of economies, he concluded, has upset negotiation process. Such a charter, he co~tended,
traditional concepts of sovereignty. Now, more than should include minimum continental labor and
ever, he said, it is crucial to establish international environmental standards, as well as mechanisms to
mechanisms to ensure the application of legal enforce those standards, as delineated in the North
standards. American Environmental, Labor, and Agricultural
Standards Act of 1992, introduced by Rep. Brown in
Dave Barrett, a Member of the Canadian April.
Parliament representing the New Democratic Party,
reflected on the Canadian experience with its free- Jerome Levinson of Arnold and Porter, a
trade agreement with the United States. He contended Washington-based consulting firm, commented that,
that freer trade and competition are not the true while the European Community model is based on the
objectives of the NAFf A, but rather that this repudiation of social dumping (Le., holding wages
agreement is driven by a corporate agenda geared to down in order to attract investments), the Mexican
maximizing returns to the investments of corporations development model and the NAFfA are premised on
without their assuming any social or environmental such dumping and on sacrificing worker rights. He
responsibility. He pointed out that, since the signing agreed with Arturo Alcalde that the Mexican
of the agreement in 1988, Canada has experienced its constitution is very progressive on labor issues. He
greatest economic crisis since the Great Depression, predicted that Mexican authorities would have no
with chronic unemployment of over 12 percent and the problem with Rep. Brown's proposal. The real issue,
loss of over 500,000 jobs. Similar processes are he stated, is enforcement of those standards.
occurring in the United States and Mexico, he added, (Continued on next page)
MODTLE FORUM (frompage4)
Stephen Silva of the American Institute for RlGHTS-NAFTA LINK
Contemporary German Studies closed the panel by Hugo Llamas, The Development GAP
presentations with an explication of the European
Community's experience with social charters. As the In a brief submitted to Canadian Trade Minister
trade among the members expanded and the social and Michael Wilson, former Member of Parliament Edward
economic problems that it created became increasingly Broadbent explores the linkage between human rights
apparent, social sectors gained sufficient leverage to and trade. "The Proposed NAFTA and Human Rights"
initiate a discussion of social policy and trade. The calls on trading countries to recognize the connection
social charter that emerged from that process consists between economic and political change and to adhere
of 47 social instruments, but just 21 are binding, and to a common framework of ideals that gives priority to
most of those reflect the priorities of corporations. the human rights of its citizenry.
The EC went beyond the NAFTA, however, in Broadbent cites the European Community (EC) as
establishing an intergovernmental structure that has the a leader in recognizing the linkage between trade and
power to develop and implement social policy. human rights. Eleven of the 12 EC member countries
According to Silva, we should avoid the approach adopted a Community Charter of the Fundamental
taken under the U.S.-Canada FTA, in which a dispute- Social Rights of Workers, and Spain's and Portugal's
resolution panel made up of a panel of experts hand- entry into the EC was delayed until they met the
picked by the government has been established. Such member-states' human-rights standards. Likewise, the
a panel, he emphasized, should be open to Charter of the European Bank for Reconstruction and
representation from different social groups, particularly Development links its lending policies to human rights,
pluralism and democracy.
those in contact with and representing the grassroots,
rather than consist solely of free-trade economists. . Broadbent, president of the International Centre for
Human Rights and Democratic Development, asserts
that long-term political stability, which is jeopardized
by political repression, is imperative for sustained
economic growth. Addressing human rights within a
NAFTA, he maintains, would represent an important
opportunity to promote those rights in a positive way,
rather than in a negative manner such as through the
application of economic sanctions. Canada, he argues,
should support groups and people in Mexico who
advocate the integration of human rights into a
NAFTA. "Canada claims to support human rights
groups internationally," he writes. "Now is the time to
show we mean business."
He concludes with three policy options. The first
is to include specific humans rights in the main body
of a NAFTA or in a companion document linked to a
NAFTA; this could be accomplished through a Social
Charter. The second option would be the formation of
an independent agency that would monitor the effects
of free trade on human rights in the three countries.
Including human rights in a-preamble to an agreement
would be a third option. Broadbent and the Centre
urge the Canadian negotiators to push for the
integration of a Charter into a NAFf A, but
available fQr'"$5from Ari(o@'TriXtcsliif6r/M1tfii; io; -B.o~> recommend the second option should such a charter be
1896, Bisbee. AZ 85603,(()()2)432-7340.: . ..
ENVIRONMENTAL GROUPS COUNTER "GREENWASH"
There have been persistent rumors that the most citizens "concerning the failure of any Party to enforce
recent drafts of the NAFfA are replete with language environmental laws or to abide by international
designed to appease U.S. Congressional concerns environmental agreements." All Commission meetings
regarding the potential environmental impact of an and reports would be accessible to the public, but not
agreement. News reports now indicate, in fact, that a the identity of the complainants, which would be
"breakthough" has been made in the form of the confidential at their request. The paper also
adoption of environmental language by the negotiators. recommends that local citizen committees be
established in each country to report to the
U.S. environmental and consumer organizations Commission on local environmental issues.
such as the Natural Resources Defense Council and
Public Citizen have denounced this language, however, The paper continues with recommendations geared
as "Greenwash." It is their understanding that this to ensure that environmental standards are not
language is the same as that contained in the GAIT compromised by the trade agreement. These include
Uruguay Round draft on the issue of food-safety the broadening of exemptions to enable the adoption
standards, a proposal that they have already denounced or enforcement of measures to protect natural
as unacceptable. resources, as long as those measures do not "constitute
a means of arbitrary discrimination between like
A group of thirteen U.S. environmental products or production practices." Similarly, the group
organizations have written a paper entitled suggests language that would safeguard existing and
"Environmental Safeguards for the North American future sanitary and phytosanitary measures, as well as
Free Trade Agreement," which presents its priority technical standards and regulations, so long as they do
recommendations on what would be adequate not arbitrarily discriminate against imports. It also
treatment of environmental issues within a NAFf A.
proposes wording to guarantee that nothing in a
They begin by noting that the Bush Administration's NAFTA would prevent or undermine the implementa-
actions to date on the environment and NAFT A have
tion of international environmental agreements.
been limited to publishing two reports: the Integrated
Border Environment Plan (IBEP), written by the EPA The authors also suggest language on the process
and its Mexican counterpart agency, SEDUE, and the of dispute resolution that would place the burden of
Environmental Review of U.S.-Mexico Environmental proof in disputes involving environmental and/or
Issues (ER), prepared by USTR. They assert that public-health standards on the challenger, rather than
these reports "do not inspire confidence that NAFTA on the challenged cOlmtry, as is now the practice.
implementation will proceed with adequate Citizens and NGGs would be permitted to participate
environmental safeguards," and that those safeguards in these cases, and environmental experts would be
belong within the NAFTA itself, rather than in any given a central role in resolving disputes.
parallel accord or plan.
Finally, the group proposes that language be
The group proposes that a North American included in a NAFTA that commits the three countries
Commission on Trade and the Environment monitor to provide sufficient funding to fully implement
and report on the enforcement of environmental environmental laws throughout the continent. Funding
regulations and investigate and act on violations. The
commissioners would come from each of the three
sources could include user fees, corporate income
taxes and other direct and indirect taxes. .
countries and include representatives of national and
local non-governmental environmental organizations. Source: "Environmental Safeguards for the North American Free
All Commission members would be required to have Trade Agreement," prepared by Arizona Toxics Information,
Border Ecology Project, Center jor International Environmental
demonstrated expertise on environmental matters and
Law - U.S., Community Nutrition Institute, Defenders of Wildlife,
would "not have a vested economic interest in trade
Environmental Defense Fund, Friends of the Earth, Institute for
and investment arising from this agreement. Agriculture and Trade Policy, National Audobon Society, Natural
Resources Defense Council, Public Citizen, Sierra Club and
The Commission, as proposed in this paper, would Texas Center for Policy Studies, June 1992.
receive complaints from governments, NGGs and
CONGRESSMAN CHIDES NAFTA WITH NEW TRADE PROPOSAL
by Lynden Peter, U.S./Mexico Trade Project
Rep. James A. Traficant (D-OH) recently are worried that free-trade agreements will increase
introduced a new trade bill, H.R. 5005, to demonstrate food imports from countries with virtually no farm
the unconstitutionality of the NAFf A. The "Ohio regulations or regulations that are not enforced. Those
Free Trade Agreement" would exempt any person American farm operators who practice environmentally
operating a trade or business in the State of Ohio from sound farming techniques stand to be the big losers
all Federal laws and regulations on trade and business. from free-trade agreements that promote the lowest
common regulatory denominator. .
In a letter to colleagues, Rep. Traficant warned of
problems with free trade. He wrote, "If Ohio were "Dear
Source:Rep.JamesTrafic.ant's letter,1 May
exempt from OSHA, EPA, IRS, Department of Labor, 1992.
or Social Security laws and regulations, then Ohio
could be competitive with countries like Mexico,
China, the Philippines and other countries that have
little if any regulations to which the industrial sector
must comply...Environmental regulations are virtually
nonexistent in these countries. Workers earn barely
enough to survive and, more often than not, work
under occupationally hazardous conditions. Moreover,
how can we expect American companies to stay in the
u.S. or to open new plants in this country when we
make it so easy for them to leave the U.S. to set up
shop in countries with fewer, if any, regulations?"
Like other business people, American farmers must
comply with stringent U.S. environmental regulations
in order to participate in government programs. Many
. . . '.
. . . .. .. . '. q..
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Fora copyof the report,co/1:tacttheWesie-indoverMts'
Association at phone (303)623-9378,fax (303)534-7309.
THE NEGOTIATION OF THE FREE TRADE AGREEMENT:
AN UNFAVORABLE PATH FOR MEXICO
A summary of a preliminary analysis from Mexico of the "DalUzsDraft"
Editor's note: The following article is a translation of " Las negotiated does not contain these elements and
Negociaciones del TLC, un Rumbo Desfavorable para Mexico, " consequently does not respond to the interests of the
from Altemativas, the newsletter of the Mexican Action Network civil societies in the three countries. Therefore the
on Free Trade (RMALC). We will continue to exchange articles
with the RMALC for publication in future issues of our respective
Network reiterates its rejection of the NAFTA that the
newsletters. authorities are now negotiating.
The document that RMALC has obtained and made General considerations about the document:
public is a draft of the official free-trade document.
The declarations of the Mexican authorities regarding * The document contains various degrees of detail.
the supposed lack of authenticity of the Dallas Draft There are parts that are completely bracketed and
lack any legitimacy, as is demonstrated by the other parts -- fewer in number -- with a basic text with
affirmations of Canadian and United States authorities few, but important, differences, which demonstrates
who have reiterated on many occasions that the Dallas the slowness of the negotiations.
Draft is the official document.
* The text does not include the advances made in
The RMALC, fulfilling its obligation to the areas of fundamental importance for Mexico such as
Mexican society, has made the official document energy, the automotive industry and unfair trade
available to the public. The level of detail of this practices. This makes us contemplate the existence 9f
document, however, is not the responsibility of the negotiations at different levels of confidentiality,
Network, but reflects the state of negotiations. It gives which represents a major risk for the civil societies of
insights into what has been negotiated and permits us the three countries.
to identify the key points of the negotiations. It is the
responsibility of official negotiators not only to * Canada and the U.S. do not recognize the
provide information about the draft th~t is now in our asymmetries among the three countries, which
hands (and to explain the lack of honesty in official confirms doubts with respect to the supposed
declarations) but also to maintain open channels of impartiality of the negotiations.
information about possible changes produced by the
discussions. * The clause referred to as "national treatment" is
present throughout the text and demonstrates the latent
Once the document was known, the Network danger in the negotiations of offering great
reiterated its position with respect to the NAFTA opportunities to North American transnational
being negotiated by the governments of Mexico, the corporations to the detriment of Mexico's sovereignty
United States and Canada. First, the Network demands and right of self-determination.
that the Mexican society be informed periodically of
what the authorities are negotiating. The Dallas * The document does not include any kind of concrete
document not only reaffirms doubts regarding the and effective measure to guarantee that the civil
possible dangers of a secret negotiation of such scope, society is protected from the possible risks resulting
but it also opens new and profound concerns about from the implementation of a NAFTA (regarding
what is being negotiated. On the other hand, it is employment, social security, housing, the environment,
crucial to point out that the Network does not oppose etc.), which demonstrates that the Social Agenda has
the diversification of our country's trade relations, or been excluded from the NAFTA negotiations.
the signing of a development pact that contemplates
the expansion of trade, but that clearly recognizes the Specific considerations about the document:
asymmetries of the contracting countries and favors a
Social Agenda over the Corporate Agenda. It is The Network presents below the preliminary results of
evident that the NAFTA that is currently being its analysis of some of the points in the February draft.
1. Objectives and Scope: 6. Safeguards:
- There is disagreement on the level of obligation - These are only considered in cases of emergency
required under a NAFTA. Therefore, the degree of (due to increases in imports) for the protection of
commitment among the three countries is not clear. producers, disregarding the protection of the
- The specific methods by which the the differences environment and the consumer.
among the three countries will be taken into account - There is no agreement on the methods that would
are not clear. yield any safeguarding measures --not even in those
- The conditions for "national priority," which create instances when there should be intervention.
exceptions for some agreements within the NAFTA,
are not specified. 7. Agriculture:
- The implementation of clauses related to subsidies
2. Investments: and permits would remove most basic grain
- The chapter annuls Mexico's Foreign Investment producers from the market.
Law. - Mexican production would be restricted to the
- It limits the role of the state to one of administrator production of tropical fruits and vegetables.
and promoter of national investment. - The functions of the Secretary of Agriculture and
- National benefits can not be demanded from foreign Water Resources are put on the negotiating table.
investments established in Mexico. Complete
freedom is given for the exporting of profits and for 8. Telecommunications:
making intra-firm purchases, etc. - There is an absence of mechanisms to assure access
to state-of-the-art technology in this sector, in
3. Rules of Origin: addition to the fact that there is no recognition of
- There are disagreements here on the conceptual issue productive inequalities.
(the definition of a rule of origin) and the - There is resistance to recognizing the limitations in
quantitative issue (the Americans are attempting to Mexico's constitution regarding granting access to
increase the percentage of national content above telecommunications only through government
50%, while on the Mexican side they want to concessions. .
decrease it). There is no clarity on the specification
of costs (labor and non-labor, Le., ecological), which Translated by Hugo Llamas, The Development GAP.
does not guarantee the recognition of asymmetries
and how to surmount them. This would favor the
continuation of the comparative advantages that
Mexico possesses today: low wages, deficient. PRI CLAIMS WIN (frompage 3)
legislation on labor and the environment, etc.
opponents by a ratio of 50 to 1 in Michoacan, in part
4. Market Access: by sharply increasing spending by Solidarity. the
- The absence of cited annexes is apparent (regarding government's anti-poverty program. The government
groups of products and timing), which makes one also uses its power to monopolize television and other
reflect on where these issues are being negotiated. media coverage of the elections.
- The Mexican position makes reforms in national
legislation imminent due to the concessions on The citizens' coalitions expect to complete their
"national treatment." final reports on the 12 July elections by 22 July.
Copies of the final report will be available from.
5. Intellectual Property Rights: Cynthia Power at The Development GAP.
- The negotiations undermine the right to develop
policies on scientific and technological matters. Sources: "No hay condiciones que garanticen el libre ejercicio
- The negotiations represent a threat to the cultural democratico," by Tereza Gurza, La Jornada. 14 July 1992;
identity of our country. "Elecciones en el paIs de nunca jamds, " by Jose Ortiz Pinch£tti.
La Jornada. 15 July 1992; "Mexican Parry Loses One Vote,
- There are no regulations that guarantee access to Faces FighJ in Second." by Tim Golden. Th£ New York Times. 15
state-of-the-art and ecologically sustainable July 1992.